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PART A Calculation of R&D deduction

Last updated 23 June 2008

Important notes on Part A of the R&D schedule

For Part A items 1 to 14, note the following:

Base amount column

The base amount for each item is the amount of the deduction available for the particular classification of expenditure BEFORE any additional concessional component is added. The three columns to the right of the 'Base amount' column allocate the base amount to three parts according to the level of any concession that applies (100%, 125% and 150%).

Attention

Do not add in the amount of the additional concession in these labels. This is automatically calculated at item 16.

End of attention

Where there is a shaded area instead of a box, that level of concession does not apply to that expenditure.

Claimable at 100% column

The 'Claimable at 100%' column includes, but is not limited to, expenditure that:

  • clawback applies to (section 73C of ITAA 1936)
  • represents an intra-group mark-up (subsections 73B(14AA)-(14AD) of ITAA 1936), or
  • is subject to the operation of section 73CA or 73CB of ITAA 1936 (expenditure not at risk or expenditure incurred to tax-exempt bodies which is not at risk).

Claimable at 125% column

Include in the 'Claimable at 125%' column all amounts eligible as a deduction at the rate of 125%.

Claimable at 150% column

The 'Claimable at 150%' column applies in very limited circumstances. It applies to expenditures covered under the 1996 transitional rules which applied when the concessional rate changed from 150% to 125%.

Incremental tax concession deduction

Part A of the schedule does not calculate any incremental tax concession deduction (50% Premium). Such a deduction is determined at Part D.

QC18884